When Responding to a Request for Adjustment When a Third

question 35

Multiple Choice

When responding to a request for adjustment when a third party is at fault, the best approach is to

• A)refuse the claim and suggest that the customer sue the third party.
• B)refuse the claim but forward the paperwork to the third party.
• C)respond promptly, explaining how the problem will be solved.
• D)honor the claim but explain that your company was not at fault.

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Definitions:

Continuation Statements

Documents filed to continue the effectiveness of a UCC financing statement beyond its original expiration date.

Financing Statement

A document filed to give public notice of a secured party's interest in the debtor's personal property, usually in connection with securing a loan.

Five-Year Period

A fixed duration of time equaling five years, often used in contracts, legal agreements, or statutes of limitations.

Perfection

In the context of secured transactions, the legal process by which a secured party establishes the priority of its security interest against third parties.